UNIVERSITY OF WATERLOO 
AFM 273: Financial Instruments and Capital Markets 
Comprehensive Revision Guide and Notes 2026 
 
Part 01: About This Guide 
Part 02: Sample Examination 
Part 03: Suggested Solutions to Exam Paper 
Part 04: Study Tips for Students 
 
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AFM 273: Financial Instruments and Capital Markets

$25.00

ACADEMIC YEAR 2025 - 2026

University	University of Waterloo
School	Accounting and Finance
Course Code	AFM 273
Course Name	Financial Instruments and Capital Markets
Notes Title	Comprehensive Revision Guide and Notes
Page Length	28

Master the AFM 273: Financial Instruments and Capital Markets final with a complete, course-aligned exam guide. It features exam-style questions with step-by-step solutions, clear pointers on common pitfalls, and a simple breakdown of the exam format and grading. Topic-by-topic explanations highlight the key concepts and methods you’ll need, followed by short, practical examples that show the workings. Use it to focus your revision, practice under test conditions, and walk into the final confident and prepared.

AFM 273: Financial Instruments and Capital Markets is the first in a two-course core finance sequence, focusing on financial instruments, valuation techniques, and team-based problem-solving. Students learn to analyze intrinsic value estimates using various models, assess systematic risk and its proxies, understand portfolio diversification, and compare simple derivative contracts with their applications.

Prerequisites include one of ACTSC127, AFM121, or AFM127, alongside either AFM113 or STAT211, and enrollment in specific programs such as Accounting & Financial Management, Biotechnology/CPA, or Sustainability & Financial Management. It cannot be taken by students who have completed or are enrolled in ACTSC291, AFM272, or ECON371.

COURSE CODE	COURSE NAME
AFM 101	Introduction to Financial Accounting
AFM 102	Introduction to Managerial Accounting
AFM 231	Business Law
AFM 272	Global Capital Markets and Financial Analytics
AFM 273	Financial Instruments and Capital Markets
AFM 274	Introduction to Corporate Finance
AFM 275	Corporate Finance
AFM 280	Introduction to Organizational Behaviour
AFM 291	Intermediate Financial Accounting 1
AFM 322	Derivative Securities
AFM 391	Intermediate Financial Accounting 2
ECON 101	Introduction to Microeconomics
ECON 102	Introduction to Macroeconomics
ECON 201	Microeconomic Theory for Business and Policy
ECON 221	Statistics for Economists
ECON 290	Models of Choice in Competitive Markets
ECON 322	Econometric Analysis 1
ECON 323	Econometric Analysis 2
ECON 371	Business Finance 1
ECON 372	Business Finance 2
ECON 423	Time Series Econometrics
MGMT 244	Principles of Marketing
PSYCH 292	Basic Data Analysis
STAT 202	Introductory Statistics for Scientists
STAT 443	Forecasting

MITCA.

Updated for 2026

AFM 273: Financial Instruments and Capital Markets

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